Diamond Offshore declared a special quarterly cash dividend of 75 cents a share and a regular quarterly cash dividend of 13 cents a share.
The company reported a year-over-year net profit decline to $145.8 million, or $1.05 a share, from $176 million, or $1.27 a share, because of decreased utilization rates for its deepwater and ultra-deepwater rigs. Revenue also declined 3% to $709.7 million.
The stock was up 7.05% to $51.95 at 12:26 p.m. on Thursday.
Separately, TheStreet Ratings team rates DIAMOND OFFSHRE DRILLING INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIAMOND OFFSHRE DRILLING INC (DO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite currently having a low debt-to-equity ratio of 0.54, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.44 is very high and demonstrates very strong liquidity.
- 39.15% is the gross profit margin for DIAMOND OFFSHRE DRILLING INC which we consider to be strong. Regardless of DO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DO's net profit margin of 13.20% compares favorably to the industry average.
- DO, with its decline in revenue, underperformed when compared the industry average of 8.3%. Since the same quarter one year prior, revenues slightly dropped by 6.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Energy Equipment & Services industry and the overall market, DIAMOND OFFSHRE DRILLING INC's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $208.09 million or 31.02% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: DO Ratings Report